Oil prices edged up on Monday, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.
Brent crude futures gained 9 cents, or 0.1%, to $86.15 a barrel. Earlier in the session, the contract touched its highest since Oct. 3, 2018, at $86.71, Reuters reported.
WTI was up 29 cents, or 0.4%, at $84.11 a barrel, after hitting $84.78, the highest since Nov. 10, 2021, earlier in the session.
The gains followed a rally last week when Brent rose more than 5% and WTI climbed over 6%.
Frantic oil buying, driven by supply outages and signs the Omicron variant will not be as disruptive as feared for fuel demand, has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer, traders said.
"The bullish sentiment is continuing as producer group OPEC+ is not providing enough supply to meet strong global demand," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
"If investment funds increase allocation weight for crude, prices could reach their highs of 2014," he said.
